KÜRESEL POLİTİK EKONOMİ

Feudalism: structure of medieval societies, where the land owner lords controlled the political and economic relationships of society by giving protection to peasants serves and exploiting their labor. Therefore, the correct option is C.

Capitalism: a mode of production that depends on private property and accumulation of profit through market exchanges. Therefore, the correct option is B.

absolutist monarchy as the head of lords as a form of government gradually weakened in the West as well as its ideology of absolute divine right of kings. Since division of power among various classes and liberating towns and markets strengthened power of commercial capitalists against those absolutist monarchs, more liberal ideas in terms of government spread further around Western Europe. But in Eastern Europe, absolutist power of monarchy (tsars in Russia) was used to strengthened serfdom and privileges of aristocratic classes. Therefore, the correct option is A.

Marxism: is a theory and method for working class emancipation through socializing the means of production. Aims to end private property’s power over social relationships. Therefore, the correct option is D.

The last attempt by Kornilov and pro-Tsarist groups to erase the power of Soviets in mid summer 1917 was defeated and in November 1917 first socialist state of the world was founded. But aside from the historical backwardness compared to Western countries, Russian revolution was largely isolated without the experience of Western parliamentary traditions, civilian struggles for democratic rights and mass of peasant population did not ease the conditions for a working class revolution, which supposedly established the workers’ rule over society. But as the events surrounding the first constitutional assembly in Russia showed, neither Bolsheviks nor most of other groups accepted Western norms of parliaments. Under economic and political difficulties, Bolsheviks chose to use force against the opposition, that literally turned Soviet Russia into one party state. Years of civil war, 1918-1921, further escalated the difficulties of conditions in the country. Therefore, the correct option is C.

According to Hayek, information and coordination cost would be too great to undertake this kind of central planning. Some economists also pointed out the problem of motivation for the socialist planning. They added that most of the time in production process, workers, managers and state planners would not have any personal incentive to innovate since there is no specific award that they can take from new ideas. So system would be inefficient and may be prone to corruption because of the lack of democratic accountability of government officials in authoritarian countries like the former Eastern Europe. Therefore, the correct option is D.

Mikhail Gorbachev: 8th and the last general secretary of the Soviet Communist Party, and the last leader of the USSR. Therefore, the correct option is E.

Glasnost & Perestroika: Gorbachev’s reform for political and economic liberalization and transparency in the 1980’s USSR. Therefore, the correct option is E.

In terms of transition to a free market economy, Yeltsin and his main aid Gaidar applied what economists called shock therapy to the Russian economy in order to finish this transition period as soon as possible. This unrelentless trade liberalization in Russia entailed first, fast privatizations of more than half of state enterprises, which benefited former communist party bureaucrats and their new oligarch friends as the value of these enterprises were not calculated on any feasibility report but mostly determined by the corrupt dealings of the new state elite and former managers of those industrial enterprises. Mafia economy and primitive accumulation of capital through illegal means were widespread in the early years of transition. Therefore, the correct option is A.

The ruling party’s reforms did not have any political liberalization program, as the Chinese Communist Party saw the collapsing USSR and Eastern Bloc economies in 1980’s. Ruling elite in China took the lesson from Soviet experience that without a sound economic structure, political and cultural reforms would cause unexpected turn of events, which the single party government can not control. One of the biggest examples of these policies was demonstrations in Tiananmen square in 1989. Chinese population saw that political openness of Gorbachev and his reforms in Eastern Europe and demanded the same political liberalization in China too, but Chinese bureaucrats were not ready to accept a transition to capitalism without their firm control. That was also a reflection of thousand years of Chinese political culture which mainly uphold the state and ruling elites’ interests far above the interests of ordinary Chinese. In 1989, first phase of economic reforms created imbalances between countryside and special economic zones in coastal areas. Unemployment, rising inflation, greater inequalities among party officials and masses, increasing corruption were all symptoms of political problems that surround China. In Tiananmen, ruling elite violently suppressed the demonstrators with around 1300 deaths but unlike the chaotic 1990’s in post-Soviet Russia, China passed the same era relatively calm. They even sped up the reform process in economy after 1992. Therefore, the correct option is B.